For those looking to move abroad, Airbnb can be an excellent choice when trying to earn an income whilst overseas. However, before you make the leap, there are a few things you need to know about this type of hosting business and how to ensure it succeeds in your location of choice.
In this article we’ll give you 5 tips for a successful Airbnb business abroad. Let’s dive right in!
Do your research
Maintaining a goal-oriented mindset is crucial to a successful airbnb business abroad. Before hosting an airbnb, create a mission statement to help maintain your goals. This will help you stay on track, avoid distractions and keep your focus on the success of your business. You can write one before you host or during the process as you see what works best for you and your guests.
As an example of a mission statement, one might be: transform spaces to help other people have a home away from home when they travel.
Survey the market
If you want to run an Airbnb abroad and be successful, it’s important to differentiate your home from the competition. If your space doesn’t stand out, it blends into the background. Choose what makes your place unique such as a great view or an eye-catching style. Make your price competitive in order to be successful in this business abroad. It is crucial to compare your price to other listings, to find the perfect balance between being overpriced and too cheap.
You want people to have enough money to stay while still making some profit yourself.
Create a profit plan
If you’re starting a business, the first thing you should do is create a profit plan. Think about what initial investment you want to make into the property. Will it be minimal decor or a complete renovation? Consider different renovation plans before making a decision; that way you won’t end up with high renovation costs that won’t be recouped quickly enough to benefit from Airbnb.
In addition to renovations, you have ongoing costs to make sure your guests have the supplies they need. You might consider hiring someone to provide this service for you if you’ll be abroad, away from Airbnb’s location, but then you have to consider the cost of hiring someone. In addition, think about how frequently your property might require a little TLC, just as you would with any house.
Reviewing and formatting a profit plan will help you identify how much your proposed idea will cost, as well as compare it to your expected monthly income.
Think like a guest
People who live in a space may have gotten so accustomed to it over time that they’re not thinking about things such as a toothbrush or toothpaste, or potential design flaws in the property. Consider asking a friend or family member to stay for a night or two, and make sure it will be 5-star Airbnb quality.
A hospitality mindset has to be the central goal of a business if they are to succeed. It’s the reason people go to hotels that have the same branding – they know what to expect and how they’ll be treated. your hotel can become a place for guests to feel as if they are the first ones to ever set foot in it, where every detail is taken care of, like the phone charger on the bedside table, and you should strive to give your guests that same feeling so they’ll keep coming back.
When you’re starting out, it’s best to take on each of the individual parts of the booking process: starting with a message of welcome, followed by tidying up, and finally making sure everything is orderly and prepared for the next group of guests. Once you grasp all the facts, then you can figure out a way to automate the process for the best outcome.
With Airbnb, people find themselves looking for the property and being unable to get into the property as a result. Perhaps think about a Smart Lock, or getting a concierge on hand to greet people and help them find the location with ease.
How RHJ Accountants can help
We recognise more than ever that individuals and businesses from the UK and other countries may be globally mobile. We aim to make you aware of the tax-efficient opportunities, available tax relief and structure finances for life at home and abroad.
Our international team of specialists operate from offices in the UK and Portugal. We work together synergistically to provide tax efficient solutions to our clients to help them grow their business whilst keeping tax liabilities to a minimum.
Get in touch with us today to find out more, or to make use of our services.